In Tokyo's 23 wards, the average unit price of new condominiums in 2023 soared about 40% from the previous year to ¥114.83 million
The average unit price of new condominiums put up for sale in Japan in 2023 was ¥59.11 million, up 15.4% from the previous year and hit a record high for the seventh consecutive year, according to Real Estate Economic Institute. The nationwide average price was pushed up by rising costs for construction materials and labour, as well as a number of ultra-luxury properties in central Tokyo, the institute said. The research firm predicts that condominium prices will remain on an upward trend amid rising costs.
In the Tokyo metropolitan area, which includes Tokyo and the neighbouring prefectures of Kanagawa, Saitama and Chiba, the average price stood at ¥81.01 million, up about 30%. In Tokyo's 23 wards, the average price soared about 40% to ¥114.83 million, topping ¥100 million for the first time. In the Kinki region, which covers Osaka, Kyoto, Hyogo, Nara, Shiga and Wakayama prefectures, the average price climbed 0.7% to ¥46.66 million.
Among major cities, Nagoya saw its average condominium unit price rise 14.5% to ¥41.08 million, reflecting a decline in the supply of condominiums for single-person households. Meanwhile, the average unit price fell 0.8% to ¥49.8 million in Sapporo, 0.7% to ¥46.29 million in Sendai, 8.5% to ¥40.76 million in Hiroshima and 5.5% to ¥39.96 million in Fukuoka. With construction costs remaining high, there are efforts to curb condominium prices by reducing the size of rooms.
In 2023, the nationwide supply of new condominiums decreased about 10% to 65,075 units, below 70,000 for the first time since 2020, when sales activities were restricted due to the spread of COVID-19. Condominium supply increased in Tokyo's 23 wards, where a number of large condominiums were put up for sale, but supply shrank in many other areas. The research firm predicts that nationwide condominium supply will rebound 9.1% to 71,000 units in 2024, partly reflecting the release of more large condominiums in the city of Osaka. At a time when condominium prices in central Tokyo are rising and real estate is on an upward trajectory, condominium supply in suburban areas is expected to increase according to an official from the firm.
